Mubasher: Qatar’s international and domestic debt instruments reached $17.1 billion in one year on the back of the Arab rift.

On 5 June 2017, four Arab countries -Saudi Arabia, Egypt, Bahrain, and the UAE, decided to cut off diplomatic and trade ties with Qatar, accusing the GCC nation of financing terrorism. Doha forcefully denies the charges.

Domestic debts of the world's richest country per capita recorded QAR 18.75 billion ($5.1 billion) by the first anniversary of the geopolitical crisis, according to Mubasher’s recent survey.

Moreover, the gas-rich nation offered international bonds on three tranches with a total value of $12 billion.

Qatar’s offerings reached 31, including government bond, suskuk and treasury bills, data showed.

Qatar’s ministry of finance had previously forecast the 2018 budget deficit to decline 1.1% to QAR 28.1 billion, compared to QAR 28.4 billion in the year before.

The ministry noted that it would plug the state budget deficit through debt issuances.

Qatar’s estimated debts until the end of 2017, which represent 54% of the country’s gross domestic product (GDP), are still affordable, according to the International Monetary Fund’s (IMF) recent data.

International bonds

In April 2018, Qatar raised $12 billion in its first dollar-denominated bond sale in two years, to be the biggest dollar bond issuance from an emerging-market nation since the beginning of 2018.

The total bids of Qatar's Eurobonds reached $52 billion, which reflected the country’s financial stability.

The world's top exporter of liquefied natural gas offered 5-, 10- and 30-year securities.

Domestic debts

On the other hand, Qatar issued domestic bonds worthy QAR 7 billion during the period between July 2017 and May 2018.

As for sukuk, the Arab country had only one issuance on 13 March with a total amount of QAR 900 million, with a yield of 3.95%.

Treasury bills

During the first year of the diplomatic rift, Qatar sold T-bills of QAR 10.85 billion, Mubasher's data showed.

Translated by: Kholoud Mohamed Hussein

Source: Mubasher Exclusive

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